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A large index fund has an expected return of 8% and an expected volatility of 10%. Bitcoin has an expected return of 20% and an
A large index fund has an expected return of 8% and an expected volatility of 10%. Bitcoin has an expected return of 20% and an expected volatility of 40%. The expected correlation between the returns of the large index find and Bitcoin is 0.50. The current risk free rate is 3%. Determine the expected Sharpe Ratio for portfolio that is 95% large index fund and 5 % Bitcoin. (2 decimal places)
A. 0.50
B. 0.53
C. 0.61
D. 0.81
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